Banking giant Abbey National could be set to reduce staff numbers by up to 3,000 as part of a cost-cutting drive, it was reported today.

Abbey is considering the move - equivalent to around one-tenth of its workforce, in order to save £100 million, the Financial Times said.

Britain's sixth largest bank has already said it is looking for a tighter control of costs after a gruelling few months in which half-year profits dived 34 per cent and it parted company with chief executive Ian Harley.

Abbey National confirmed today a review of costs was still taking place but said that it was too early to comment on the likely outcome.

A spokeswoman added: "It is unlikely we will avoid redundancies but as yet there's no sense as to what the number will be."

The FT said it was thought the job cuts could be achieved in back offices and by the outsourcing of some information technology services.

The reduction is also likely to be managed through normal staff turnover, although any compulsory redundancies would be the first in the current economic cycle, the report added.

Abbey National's recent problems stem from its involvement in high-risk corporate lending in the United States.

Interim pre-tax profits fell after the group reported a £208 million increase in the amount it took to cover bad loans in its troubled corporate-based wholesale bank.

Just days before those results were unveiled in July, Abbey announced the departure of its chief executive - a position that has still to be filled.

Chairman Lord Burns has taken on executive duties and has pledged to steer the company out of trouble.

His priorities include a greater focus on the group's core retail financial services operation and a stronger control of costs.